Bank Balance Sheet Final

8/2/2019 Bank Balance Sheet Final

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BANK BALANCE SHEET

V/S

COMPANY BALANCE SHEET

Presented by:

Manish Vijay Pandhi

Roll No:34


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Bank balance sheetLIABILITIES ASSETS

Deposits

- Demand Deposits

- Savings Deposits

- Term Deposits

Cash

- Cash in hand

- Balances with RBI

Borrowings Balance with Bank, Money at call and Short

Notice

Capital Investments

- Government securities

- Shares

- Debentures and Bonds

- Subsidiaries and Joint Ventures

- Other investments

Reserves and Surplus

- Statutory Reserves

- Share premium Reserves

- Capital Reserves- Revenue Reserves

- Investment fluctuation Reserves

Loans and Advances

Other Liabilities

- Bills payable

- Interoffice adjustments

- Interest accrued

- Provisions

Fixed Assets

Gross Block

Less: Depreciation

Net Block

Other Assets


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Company balance sheet

LIABILITIES ASSETS

Shareholders funds- Share Capital

- Reserves and Surplus

Capital Reserves

Bond/ Debenture redemption

Reserves

Share premium Reserves

Fixed AssetsGross Block

Less: Depreciation

Net Block

Capital Work In Progress

Loan funds

- Secured loans

- Unsecured loans

Investments

Current Assets

- Inventories

- Debtors

- Cash and Bank Balance- Loans and Advances

Less: Current Liabilities

- Creditors

- Provisions

Intangible Assets


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GENERAL DIFFERENCES

BANK BALANCE SHEET COMPANY BALANCE SHEET

- It is prepared in the format specified

by the Banking Regulation Act, 1949.

- It is prepared in the format specified

by the Companies Act, 1956.

- In a Bank balance sheet, Assets and

Liabilities are arranged in order of

liquidity.

- In a Company balance sheet, Assets

and Liabilities are arranged in order

of their duration.

- Sources of fund are primarily short

term in nature, payable on demand

with short term maturities.

- Sources of fund are generally long

term in nature.

- Under assets, we will mostly notice

loans and investments. Under

liabilities, we will see deposits and

borrowings.

- Under assets, we will notice

inventory, accounts receivable. Under

liabilities, we will see accounts

payable.


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- Paid up capital is held by the Central

Government and the Public.

- Paid up capital is held by the Shareholders

of the Company.

- As per RBI guidelines, the entry capital

requirement for new private sector bank

is Rs. 200 crores, with a commitment to

increase to Rs. 300 crores within 3 years.

- The minimum paid up capital for

Private Limited Company: Rs.1,00,000/-

Public Limited Company: Rs.5,00,000/-

This limit is not applicable to company

having licence under section 25.

Capital

reserves


- Every year, banks transfer 25% of theirprofit to the Statutory Reserve.

- Statutory reserves arent held byCompanies (except Insurance

Companies).

- As per RBI guidelines, banks should build

an Investment Fluctuation Reserve of a

minimum of 5 percent of the investment

portfolio.

- As per the Companies Act, a Company

should also maintain an Investment

Fluctuation Reserve, but there is no limit

specified.


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CashBANK BALANCE SHEET COMPANY BALANCE SHEET

- To meet deposit withdrawals, day-

to-day expenses and credit drawal

demands.

- It forms a part of current asset to

meet the companys short term

liabilities.

- It includes cash in hand, foreign

currency notes, cash balances at

overseas branches, balances with the

RBI.

- It includes cash in hand and bank

balances (current accounts and

deposit accounts).

FIXED ASSETS


- Fixed Assets are Low as compared to

that of any Company.

- Fixed Assets of a Company are High.

- Less Depreciation. - High Depreciation.


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Loans and advances


- It is most important for banks andimpacts their profitability to a large

extent.

- It is subordinate for companies andincludes advances recoverable in cash

or kind and deposits.

- Maturities range from few days to

15-30 years.

- It forms a part of Current Assets.

- It carries a high level of default risk. - It doesnt carry a high level of

default risk.

Balance sheet ratios


- Operating leverage is low. - Operating leverage is high.

- Financial leverage is very high. - Financial leverage is low.


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Liabilities in a bank balance sheetDeposits:

Primary source of borrowed funds for a bank predominantly raised from the public.

Classification on the basis of purpose and maturity:

1. Demand Deposits - Balances in Current accounts.

No interest will be paid by the bank on these balances.

2. Savings Deposits - Savings account for the purpose of household savings.

Payable on demand and interest is paid on these deposits.

3. Term Deposits - Deposits with maturity period ranging from 15 days to 10 years.

Form of fixed deposits, recurring deposits, reinvestment deposits etc.

Borrowings:

Borrowings are categorised into:

1. Borrowings in India and

2. Borrowings outside India.

Borrowings from RBI, money market including call money market etc.


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Liabilities in a Company balance sheet

Loan Funds :

Long term debt taken by the company.

Loans are classified as:1. Secured loans - These loans are secured against a collateral

given by the borrower.

2. Unsecured loans - These loans are not secured against anycollateral.


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Examples of Balance sheet

Particulars As at 31-03-2010 (Rs.)

I. CAPITAL AND LIABILITIES

Capital 5259146

Reserves & Surplus 137040792

Deposits 2297619439

Borrowings 223998955

Other Liabilities and Provisions 85746253

TOTAL 2749664585

II. ASSETS

Cash and balances with RBI 156026240

Balances with banks and money at call and short notice 156275098

Investments 670801795Advances 1684907098

Fixed assets 23518088

Other assets 58136266

TOTAL 2749664585

Contingent liabilities 1350987825

Bills for collection 118101637


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Particulars As At 31.03.3011

SOURCES OF FUNDS

Shareholders' Funds

Share Capital 82527780

Reserves & Surplus 483424552

565952332

Loan Funds

Secured Loans 184455345

Unsecured Loans 583000

185038345

Deferred Tax Liabilities 11546422

Total Liabilities 762537099

APPLICATION OF FUNDS

Fixed Assets

Gross Block 385394784

Less: Depreciation 52482314

Net Block 332912470

Capital WIP 2318418

335230888

Investments 50000

Current Assets, Loans & Advances

Inventories 81450252

Sundry Debtors 524587816

Cash & Bank Balances 122211147

Loans & Advances 40107100768356315

Less: Current Liabilities & Provisions

Current Liabilities 299470670

Provisions 41653181

341123851

Net Current Assets 427232464

Miscellaneous Expenditure 23747

Total Assets 762537099


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Thank you

Documents

Bank Balance Sheet Final